Russia Faces Oil Export Decline Amid Tightened US Sanctions

Russian oil exports sharply declined in November, falling by 420 kb/d due to stricter US sanctions. As a result, Moscow's oil revenue decreased significantly. The International Energy Agency noted that the global supply also fell due to sanctions on Russia and Venezuela, while demand is forecast to rise in 2025.

In a significant development, Russian oil exports experienced a considerable decline in November, as reported by the International Energy Agency (IEA). This reduction, amounting to 420,000 barrels per day (kb/d), was attributed to heightened buyer concerns about the risks associated with stricter US sanctions.

The IEA highlighted that the contraction in Russian oil shipments, coupled with softer prices, saw the country's oil revenue drop to USD 11 billion, a stark decrease of USD 3.6 billion compared to the same period last year. Consequently, the price of Urals crude plummeted by USD 8.2 per barrel to USD 43.52 per barrel, marking its lowest point since the onset of the Ukraine conflict in early 2022.

The United States has enforced additional tariffs, including a 25% tariff on Indian imports of Russian oil, in an effort to dissuade continued purchases. The report further noted a global supply reduction, with OPEC+ nations, hit by diplomatic sanctions, leading the decline. Meanwhile, oil demand is projected to grow, buoyed by favorable economic conditions.

(With inputs from agencies.)